Enough policies in place to address Wirecard-like risks –BSP

The Bangko Sentral ng Pilipinas (BSP) on Tuesday assured the public that there were adequate policies in place to address operational risks such as what  occurred in the Wirecard scandal.

Nevertheless, in a virtual briefing, BSP Governor Benjamin Diokno said the financial sector must remain vigilant against cybersecurity risks, which he said should be a shared responsibility.

"Like any innovation, the gains from increased digitalization of finance could be weighed against what can go wrong," he said.

"In this case, cybersecurity is a collective responsibility from corporations maintaining security protocols, regulators having defined standards and expectations, technology providers continuously operating with public welfare in mind, and even individuals keeping controls over their passwords or identity details," added Diokno.

His remarks come on the heels of the Wirecard scandal in which some $2.1 billion was reported missing from the German firm.

Reports indicated that the money may have found its way to the Philippines, but this had been refuted by the BSP

Local lenders BDO Unibank Inc. and the Bank of the Philippines Islands also earlier denied any involvement and clarified that Wirecard was not a client.

Wirecard has since claimed that the $2.1 billion it had booked in its accounts likely never existed, which could tarnish the reputation of Germany's financial watchdog.

"On the part of the BSP, it has issued adequate policies to identify, mitigate, measure, and control risks including operational risks such as the Wirecard issue," said Diokno.

"Further, the BSP will be engaging the banking industry to enjoin them on the proper hiring process and know-your-customer procedure," he added. — DVM, GMA News